Conflict of Interest, Conflicts of Commitment, Nepotism and Outside Activities

I. Policy Title: Conflicts of Interest, Conflict of Commitment, Nepotism and Outside Activities

II. Who Does This Policy Affect

HFC Board of Trustees, all employees, independent contractors, volunteers, and purchasing vendors.

III. Purpose

The purpose of the Conflict of Interest/Nepotism Policy is to set forth the College’s trustee and employee activities that constitute a conflict of interest and which may jeopardize the College’s mission and interfere with the College’s highest standard of excellence and integrity, and to notify trustees and employees of potential ramifications of policy violations. In order to serve the College community and to maintain public confidence and trust in the operations of the College, the following Conflicts of Interest rules have been adopted.

IV. Policy Statement

Employees of the College and members of its Board of Trustees are expected to exemplify the highest personal and professional standards of integrity, truthfulness, honesty and diligence.

All members of the Board of Trustees and College employees are required to familiarize themselves with and to abide by this Conflicts of Interest Policy. The trustees and employees shall comply with applicable state laws which govern standards of conduct for public officers and employees and which govern contracts of public servants with public entities. College trustees and employees are notified that censure or disciplinary action may result from a violation of these rules and that any such disciplinary action shall be based on the assumption that employees and trustees are familiar with the contents of this Policy and state law. Violations of this Policy will be brought to the attention of the Board of Trustees and may be the subject of Board action, in accordance with applicable collective bargaining agreements.

This Policy does not provide an exhaustive list of prohibited conflicts of interest. The absence of particular conduct from this policy does not mean the conduct is condoned or that disciplinary action may not result. Trustees and employees are expected to also use their good judgment in following this policy and seek assistance or clarification if needed.

1. Conflicts of Interest and Conflicts of Commitment

a. A conflict of interest, or a potential conflict of interest, occurs whenever a trustee or employee, by reason of their status as such, is in a position to influence a decision that may result in personal gain for that employee or trustee or for their relative and such personal gain is in conflict with the employees’ or trustees’ duty and responsibilities to the College.
By way of example, a financial conflict of interest may be one involving the employee or Trustee, the individual’s spouse, child, partner, or organization in which the employee or trustee is serving as an officer, director, partner or employee or is negotiating or has any arrangements concerning prospective employment.

b. A conflict of commitment, or a potential conflict of commitment, occurs when a trustee or employee’s external relationships or activities have the possibility (either in actuality or in appearance) of interfering or competing with the trustee or employee’s ability or willingness to perform the full range of responsibilities associated with his or her position. College trustees and employees should not commit to other conflicting educational pursuits, research, projects, employment, or service missions while serving as a College trustee or College employee, and College employees shall not work on any educational pursuits, research, projects, other employment, or service missions during College work time, including but not limited to regular business hours or any time during which employee is being compensated by the College.

c. Except as specifically permitted by statute, employees and trustees shall not engage in any business transaction in which the public officer or employee may profit from his/her official position or authority or benefit financially from confidential information which the employee or trustee has obtained or may obtain by reason of that position or authority. No employee or trustee shall take advantage of any professional relationship he/she may have with any employee, client or student, or the parents of such clients or students, in the course of their employment with or service on the Board of Trustees of the College.

d. No employee or trustee shall be a party to or have substantial interest in any contract (excluding his/her employment agreement) with the College where the employee or trustee is involved with the decision to purchase such goods or services, unless the requirements of MCL 15.321 et seq. and MCL15.181 et seq. are strictly met. The employee or trustee must promptly disclose any financial interest in the contract to the Board of Trustees, which disclosures shall be made a matter at a Board of Trustees' meeting. The contract must be approved by a vote of not less than 2/3 of the full membership of the Board of Trustees in open session with the trustee who makes disclosure abstaining from the vote. The minutes of the Board's open meeting must contain the name of each party involved in the contract; the terms of the contract, including duration, financial consideration between the parties, facilities or services of the College included in the contract, and the nature and degree of assignment of College employees for fulfillment of the contract; and the nature of any pecuniary interest of the employee or trustee who makes disclosure.

2. Outside Activities and Employment

a. Employees and trustees shall not engage in, or commit to, any outside activity, paid or unpaid, where there may be a possible conflict, or the appearance of a conflict, between his/her private interests and his/her official duties and responsibilities, or interferes with the employee or trustee’s ability to successfully perform his or her College duties.
b. In order to avoid using one’s official position for inappropriate personal gain, the following additional rules must be observed:

i. The outside employment or activity must not result in improper use of official information obtained in connection with the employee’s or trustee’s duties or position.
ii. The nature of employment or business activity or the hours to be devoted to such outside activity will not impair the employee’s or trustee’s exercise of independent judgment, availability, capacity, or efficiency for the performance of his/or her College duties.
iii. The employee or trustee will not in any manner advertise or make it known that he/she works for the College or sits as a member of the Board of Trustees in order to generate or enhance personal business.
iv. The employee or trustee will not do indirectly, i.e., in the name of or through family members, that which he/she is prohibited from doing directly.
v. Without a valid reason, employees and trustees shall not be excused from their College responsibilities to pursue an outside activity or interest.
vi. Employees and trustees shall not engage in, or commit to, any conflicting or potentially conflicting educational pursuits, research, projects, employment, or service missions while serving in their capacity as a College employee or trustees, without first receiving upper administration written permission.
vii. Employees shall not commit to or work on any educational pursuits, research, projects, other employment, or service missions during work time, including but not limited to regular business hours or any time during which employee is being compensated by the College, without first receiving upper administration written permission.
viii. Employees and trustees shall not use College property or College time to solicit or accept customers for private enterprises without written administrative permission, from either the Board Chair or College President.
ix. Employees and trustees shall not engage in business transactions on behalf of private enterprises in which he/she may profit by virtue of his/her official position or authority or benefit financially from confidential information which the employee has obtained or may obtain by reason of his/her position. Employees and trustees shall keep in confidence all legally confidential information of the College.
x. In order to prevent interference with the orderly operations of the College, and to avoid any potential or actual conflict of interest, employees and trustees shall not campaign on College property or utilize any College equipment, internet, electronics, etc. on behalf of any political issue or candidate for local, state or national office during working time or while performing their employment duties, in conformity with applicable laws and regulations ( such as, but not limited to, Federal tax laws, Michigan Campaign and Finance Act, MCL 169.257 et seq.). The employees and trustees must use their own personal time, funds and resources. If College employees or trustees choose to become actively involved in political campaigns, they must do so on their own time, acting and speaking on their own behalf and not on behalf of the College.
xi. Employees and trustees should avoid conduct and associations outside the College, which, if known, could have an adverse or harmful effect upon the College community.
xii. Employees and trustees should refrain from expressions that would disparage their co-workers, attempt to use their supervisory role to influence others or interfere with the maintenance of discipline by College officials.
xiii. Employees and trustees shall avoid accepting anything of value offered by another for the purpose of influencing judgment, or that may be perceived as influencing judgment.
xiv. Prior to engaging in outside employment or business activities, employees not covered by a Collective Bargaining Agreement (CBA) shall address and resolve concerns regarding possible conflicts, or the appearance of a conflict, at the Division/Department level. The Executive Director of Human Resources may convene a committee to address conflicts or potential conflicts. If the concern of the employee is not able to be resolved at that level, the concern may be brought in writing to the President of the College or his/her designee. In the event the person requesting such permission is the President of the College, written permission shall be obtained from the Chair of the Board of Trustees. Employees subject to a CBA, or their Bargaining Agent, may address possible conflicts of interest at the Division/Departmental level or through their respective Bargaining Unit contractual grievance procedures, if applicable.

3. Supplemental Employment

The College recognizes that some of its employees, including part-time employees, have other employment outside of the College. This Policy is not intended to interfere with the employee’s supplemental employment, which is of a private nature and unrelated to the College’s business, provided such supplemental employment does not conflict or interfere with their duties as an employee of the College or damage or impugn the College’s brand or reputation, and does not conflict with their Collective Bargaining Agreement. Any supplemental employment must be performed outside the employee’s College working time. The supplemental employment should not interfere with the employee’s assigned duties and responsibilities at the College.

4. Self-Disqualification from Certain Assignments or Matters

An employee or trustee having been assigned any duty, responsibility, or work assignment or having been presented with an issue upon which he/she must deliberate and vote, which might create a real or apparent conflict of interest, must promptly bring the specific facts and circumstances to the attention of their immediate division or department supervisor who shall then address it with either the President of the College or the Chair of the Board of Trustees.
Whenever a matter requiring action by the Board of Trustees involves an outside business activity or governmental unit with which a trustee has an interest as described above, the Board member shall disclose such interest or relationship in writing to the Chair of the Board of Trustees and shall abstain from commenting or voting on the matter.

5. Speeches, Publications, and Textbooks

When public addresses and articles for publication are performed as an official duty or in an official capacity, the employee or trustee may not accept a fee, salary, honorarium, or other compensation from any source other than the State of Michigan, the College or the Dearborn Public Schools. Reasonable reimbursement for travel, lodging, meals, or nominal courtesies may be accepted. Where any such activity is performed in a private capacity, employees may accept a fee, salary, or other compensation provided that their activity is consistent with the rules contained in this Policy.

The selection of required student textbooks and other educational materials will, to the extent possible: (1) avoid any direct or apparent conflict of interest between the selection of course materials and potential financial gain to the College author, or a relative of the College author of the selected works; and (2) consider the total costs of higher education for the College students while also maintaining a high standard in the selection of required educational materials. Even though the selection of required student educational materials is determined by the appropriate faculty decision-maker, the faculty process, guidelines, and decision making for the selection of such required materials should comply with the Federal Higher Education Act (“HEOA”), avoid potential or actual conflict of interest that College faculty or other College personnel might have when selecting the required materials, and comply with any applicable Collective Bargaining Agreement (CBA).

The President, or designee, is instructed to develop procedures for royalties associated with textbook selection and include it in related documents to this Policy.

6. Gifts and Gratuities

Except as stated in the "Exceptions and Guidelines" provisions listed below, an employee or trustee may not solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, or loan; opportunity to purchase an item at cost, discount, or bargain price, unless such opportunity is available to the general public; or other thing of substantial, i.e. over $150.00 , monetary value from a person or entity which:

a. Has or is seeking to obtain, contractual or other business or financial relations with the College or the Dearborn Public Schools;
b. Conducts operations or activities that are affected by the College or the Dearborn Public Schools; or
c. Has interests that may be substantially affected by the performance or non-performance of the employee’s official duty or by a trustee’s vote or efforts to persuade other trustees to vote in a given manner.

7. Exceptions and Guidelines Regarding Gifts

a. In the event an employee or trustee accepts a gift or gratuity from an individual or entity as detailed in Section 6 above, the employee or trustee must within one (1) business day disclose the gift or gratuity unless it falls under one of the below exceptions to the Chair of the Board of Trustees or the Executive Director of Human Resources, and, in the event the gift or gratuity was accepted by a trustee, the Chair of the Board of Trustees shall review and determine whether the trustee should be recused from any vote that is related or could potentially appear related to the individual or entity that provided the gift or gratuity.
b. Employees and trustees may accept gifts, entertainment, and food when it is clear that it is solely for family or personal relationships and has no bearing or connection to the College.
c. Employees and trustees in attendance in their official capacity, either as an active participant or College representative, at organized functions which have been considered appropriate and important ones to attend because of the recognized benefits of such attendance to College operations, may accept food and refreshments of nominal value on infrequent occasions. Acceptance of food, refreshment, and entertainment of nominal value on infrequent occasions in other situations where there is no organized function is permitted when such action occurs in a setting where discussion involving, or beneficial to, the College may occur.
d. Employees and trustees may accept non-solicited advertising or promotional material, such as pens, pencils, note pads, calendars, and other items of nominal intrinsic value.

8. Nepotism and Personal Relationships in the Workplace

a. The College supports an environment where employees maintain clear boundaries between employee personal and business interactions individuals in supervisory relationships or other influential roles are subject to more stringent requirements under this policy because of their access to sensitive information, and their ability to influence employment decisions.
b. Family members of current College employees may become employees of the College. However, the appointment must be approved by the Vice President of Human Resources or the President of the College or his/her designee, who will determine whether there is any conflict of interest. Student workers may be approved for employment by the Assistant Director of Human Resources, in consultation with the Vice President of Human Resources.
c. An employee who is related to, or involved in a personal relationship with another employee may not work directly for or supervise that employee. The College reserves the right to take prompt action if an actual or potential conflict of interest arises concerning individuals who occupy positions at any level (higher or lower) in the same line of authority that may affect employment decisions. Matters such as hiring, firing, promotions, performance management, compensation decisions, financial transactions, etc. are examples of situations that may require reallocation of duties and personnel to avoid any actual or perceived reward or disadvantage. Student workers may be employed in the same department as a family member but may not be supervised by a family member.
i. In cases where it is necessary to transfer one of the employees to another position or department, the individual with the more senior position with be considered for transfer first to avoid any perception of retaliation against the less senior person.

9. Faculty/Staff Personal Relationships

Personal relationships, as defined in this policy, between faculty and students enrolled in the faculty’s course are prohibited. Professional mentoring relations between faculty and student are not prohibited.

10. Employment by Henry Ford College or the Dearborn Public Schools

No member of the Board of Trustees shall accept employment with the College or the Dearborn Public Schools as an employee during the term for which the Board member was elected or appointed to office.

V. Annual Written Disclosures

To maximize awareness of the conflicts of interest and conflicts of commitment policy, each year trustees and employees must submit an electronic written disclosure that affirms they will comply with this policy, and informs the College of any personal, financial and business interests and those of their family and business associates that could involve or potentially conflict with the College. Trustees and the President will deliver their disclosures to the Chair of the Board of Trustee, or his or her designee; and everyone else will deliver their disclosures to the Human Resources Executive Director. The written disclosures will be maintained in confidence by the College to the fullest extent permitted by law.

The Board Chair will review Trustee or College President disclosure and determine appropriate action based on the disclosures presented which may require further action and/or require recusal from related Board votes; the Executive Director of Human Resources will review employee disclosures and determine appropriate review and resolution which may require further employment related action.

VI. Definitions

a. For the purpose of this policy, “relative” is defined as a member of the employee’s immediate family that includes: spouse, parent, child, grandparent, sibling, grandchild, brother-in-law, sister-in-law, son-in-law, daughter-in-law, mother-in-law, father-in-law, step-parent, step-child, domestic partner, or legal guardian or other person who stands in the place of a parent.
b. A “personal relationship” is considered a relationship between individuals who have, or had, a continuing relationship of a romantic or intimate nature.
c. A “substantial interest,” as used in section IV.1.c., adheres to MCL 15.322. Accordingly, a trustee or employee has a substantial interest in a transaction involving:

i. him or herself;
ii. any firm, meaning a co-partnership or other unincorporated association, of which he or she is a partner, member, or employee.
iii. any private corporation in which he or she is a stockholder owning more than 1% of the total outstanding stock of any class if the stock is not listed on a stock exchange, or stock with a present total market value in excess of $25,000.00 if the stock is listed on a stock exchange or of which he or she is a director, officer, or employee.
iv. any trust of which he or she is a beneficiary or trustee.

d. Where doubts exist as to the specific meaning of the terms used above, employees should make judgments on the basis of the overall spirit and intent of this policy. Employees may seek clarification and direction from their immediate supervisors.

VII. Related Documents

a. Employee Collective Bargaining Agreements
b. Computer Systems Acceptable Use Policy
https://policies.hfcc.edu/policy/6800
c. Standards of Conduct and Civility
https://policies.hfcc.edu/policy/standards-0
d. MCL 15.322.
e. MCL 15.321 et seq.
f. MCL15.181 et seq.
g. Procedure for Royalties Associated with Textbooks and Other Educational Materials
https://policies.hfcc.edu/node/415

VIII. Policy History

a. Policy Approved by Board: February 20, 1995
b. Revision Date(s); October 15, 2012; September 18, 2017
c. Previous Policy Section: Employment

Reviewed/Updated:

January 16, 2024 - Approved by Board
August 2023 - Placed in new policy format and underwent major changes and now includes textbook language.

This policy supersedes and replaces any and all policies related to this subject